Clorox Reports Strong Q2 Earnings Despite 15% Sales Decline

The company raises its full-year earnings forecast, citing improved margins and an ERP transition expected to boost Q4 growth.

Clorox exceeded analyst expectations with Q2 revenue of $1.69 billion and adjusted earnings of $1.55 per share, despite a 15% year-over-year drop in net sales.
The decline in sales was attributed to divestitures and the prior year's retail inventory recovery following a cyberattack.
Gross margin improved to 43.8%, supported by cost savings and divestitures, while operating cash flow increased significantly to $401 million.
The company is implementing a phased Enterprise Resource Planning (ERP) transition to modernize operations, expected to contribute 1-2 points of growth in Q4.
Clorox raised its full-year earnings forecast to $6.95-$7.35 per share and anticipates mid-to-high single-digit growth in Q4 organic sales.